“Drilling continues to intersect Seam 1 and Seam 3 in areas where resources were previously categorized as inferred,” the company said.

“The results from the latest 12 holes, when combined with the previous 20 holes that were reported on July 9, will allow a significant portion of the previously reported inferred resources [of] 59 million tonnes to be upgraded to either measured or indicated.”

The upgrade will be updated to the feasibility study now underway and due for completion in next year’s second quarter.

As of this week, 12 more holes have been drilled for a total of 32 holes and 8044 meters completed in the permitted program of 43 holes and 14,996m.

“Seam 3 was intersected in 11 of the 12 holes, while Seam 1 was intersected in 10 of the 12 holes as drillhole RAV-09-21 was terminated short of Seam 1 due to technical difficulties during the drilling process,” Compliance explained.

“The company plans to drill an additional hole in this area to verify the existence of Seam 1 at this location.”

Compliance noted that in the holes where the coal was of a mineable thickness of 1.5m or more, Seam 1 averaged 2.79m while Seam 3 averaged 2.22m. In its initial 2007 technical report, these seams averaged 2.8m and 1.5m in thickness respectively.

“The company is extremely pleased with the drilling results to date.

“These results will allow the feasibility study to be completed on a much larger resource than the current measured and indicated resource of 39Mt. Based on our current drilling progress, the company anticipates completing the program by mid to late August, which would be a full month ahead of schedule.”

Also progressing well is the collection of environmental baseline information. The company anticipates filing Raven’s environmental assessment application in the second quarter of 2010.

“Work on the feasibility study has also commenced with the initial focus on preliminary mine planning and transportation studies,” the company said, adding that samples from the two seams of interest have been taken for gas compositional analysis that will aid in the design of Raven’s mine ventilation circuits.

Compliance said in July that all intersections were being been cored and sampled ply-by-ply and turned over to Gwil Industries’ Birtley Coal & Minerals Testing in Calgary to determine washability and quality. It is anticipated the results will be returned by the northern autumn of 2009.

Compliance began exploratory drilling at Raven, located on Vancouver Island, in June and retained consulting firm Pincock Allen and Holt for the feasibility study. It said at the time it had secured three drilling contractors and a total of four drilling rigs.

Just a few weeks before, the company had reported receiving the underground exploration permit for the British Columbia complex from the province’s Ministry of Energy, Mines and Petroleum Resources.

According to an earlier technical report prepared by consultant OR Cullingham, Raven contains 39.09Mt of measured and indicated reserves and inferred resources of just over 59Mt.

Compliance is developing Raven as part of a joint venture signed in February with Japanese firm Itochu Corporation and Korea-based LG International, both of which have elected Compliance as the complex’s managing owner.

Check out the August issue of Coal USA Magazine, due out soon, for more information on the Raven project.